[Epoch Times June 15, 2021](Epoch Times reporter Zhang Ting comprehensive report) On the occasion of the US-Europe summit, the European Union announced on Tuesday (June 15) that it had settled the aircraft subsidy dispute with the United States for nearly 17 years. Diplomats said that easing the trade conflict will help the United States and Europe focus on a broader agenda such as dealing with CCP issues.
Since 2004, the United States and Europe have been arguing in the World Trade Organization over subsidies for American aircraft manufacturer Boeing and European rival Airbus. The two sides also imposed mutual tariffs on some commodities.
The United States and the European Union agreed in March this year to suspend the tit-for-tat tariff war. The suspension period is four months and the items involved are worth $11.5 billion, ranging from European wine to American tobacco and spirits. On Tuesday, the United States and Europe agreed to remove these tariffs for a period of five years.
Before the US-Europe summit on Tuesday, U.S. Trade Representative Katherine Tai held the first face-to-face meeting with EU counterpart Valdis Dombrovskis on Monday (June 14) to discuss Aircraft subsidy dispute. The two are scheduled to speak on Tuesday afternoon.
Reuters quoted diplomats as saying that easing the trade conflict gave both parties more time to focus on broader agendas, such as concerns about the CCP’s state-driven economic model.
European Commission President Ursula von der Leyen (Ursula von der Leyen) said on Tuesday before the European-US summit with US President Joe Biden that the meeting was to get a deal on the aircraft (dispute) issue. The breakthrough began, “This really opens a new chapter in the relationship between Europe and the United States, because after 17 years of disputes over the aircraft issue, we have switched from litigation to cooperation.”
According to Reuters, the agreement should enable the United States and Europe to focus on the threat posed by China’s (CCP) emerging commercial aircraft industry.
“There is no doubt that the rise of China’s (CCP) aircraft industry… has attracted the attention of all parties.” Marjorie Chorlins, senior vice president of the U.S. Chamber of Commerce, said on Monday, noting that China has “substantial subsidies.”
The United States and the European Union stated that they will seek to solve the global overcapacity problem that mainly revolves around China (the CCP).
The United States may find it more difficult to remove metal tariffs in other countries, including China, because these tariffs are still supported by many American metal producers and workers.
The EU is pushing a new “positive agenda” on trade with Washington, including forming alliances to promote WTO reform.
The two parties may also agree to cooperate in trade and technology, such as the development of compatible standards and the promotion of artificial intelligence trade.
Editor in charge: Lin Yan #